EMSTEEL announces Asset Enhancement Programme valued at AED625 million

emirates7 - EMSTEEL, a leading steel and building materials manufacturer in the region, has unveiled its Asset Enhancement Programme, a strategic initiative with a capital expenditure of approximately AED625 million. The program is designed to bolster production capabilities and introduce advanced steel solutions to meet the growing demands of the market.

This initiative is closely aligned with the UAE’s Operation 300bn, which aims to enhance innovation in the country’s industrial sector and strengthen its economic contribution.

The programme’s focus is on advancing the development and production of high-quality, value-added solutions, supporting the UAE’s vision of becoming a global leader in manufacturing and industrial excellence.

Phase 1 of the programme will concentrate on upgrading EMSTEEL’s rolling mills to improve production capacity. It will introduce a new generation of high-strength rebars and advanced heavy-section products, expanding EMSTEEL's product range to cater to evolving market demands.

Innovation upgrades in this phase will include advanced shear systems to facilitate the production of high-strength rebars for sustainable construction. This includes EMSTEEL’s flagship products such as ES600, ASTM Grade 80, and ASTM Grade 100 rebars, designed to enhance structural integrity while reducing material consumption.

The advanced tensile properties of the ES600 rebars contribute to the decarbonisation of the construction industry by lowering steel consumption, reducing transport emissions, and decreasing the overall carbon footprint.

Phase 1 will also enable EMSTEEL to utilise state-of-the-art rolling mill technology for producing quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel, ensuring superior strength and resilience for demanding applications in high-rise buildings, large-scale infrastructure projects, and the energy sector.

QST enhances steel toughness and wear resistance through rapid cooling, improving mechanical properties without compromising weldability. TMCP optimises the steel’s microstructure using controlled rolling and cooling to achieve high strength, excellent weldability, and improved impact resistance, which are essential for structures exposed to extreme loads and harsh environments.

Phase 2 will involve the installation of a new wire rod outlet with a capacity of up to 500 KTPA and upgrades to the cooling conveyor at existing rolling mills. These improvements will enable the production of Value-Added (VA) and High-Value-Added (HVA) wire rods, as well as High Tensile Rebar in Coil. Additionally, EMSTEEL will upgrade its steel melt shop with advanced VD technology and billet caster enhancements to produce high-carbon and special alloy billets for the new product range.

These investments support EMSTEEL’s shift towards producing specialised, high-value steel products, enhancing strength, durability, and efficiency for critical applications. This transition will not only improve customer retention but also position EMSTEEL to capitalise on the growing regional demand for premium steel solutions.

With the GCC market currently reliant on imports for VA-grade wire rod products, and demand projected to grow at a CAGR of 7-10% over the next decade, EMSTEEL’s expansion will enhance its competitive position in key sectors such as infrastructure, energy, railways, industrial applications, petrochemicals, and automotive components.

The project is set to follow an ambitious timeline, with the first rolling mill upgrade scheduled for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed by mid-2027, significantly boosting EMSTEEL’s capabilities. Upon completion, the programme will strengthen the company’s market position, broaden its customer base, and drive additional EBITDA growth.

Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, commented, “As industries evolve and infrastructure projects become more demanding, the need for higher-grade steel is crucial. Without ongoing investment in advanced steel solutions, manufacturers risk falling behind in an increasingly competitive global market. EMSTEEL’s strategic transformation ensures we stay ahead of industry trends, delivering state-of-the-art materials that meet the growing needs of modern construction, energy, and industrial projects.”

He added, “We are not just enhancing production capabilities; we are setting new industry standards and pioneering solutions that will shape tomorrow’s skylines. By investing in innovation and sustainability, we reaffirm our commitment to delivering world-class steel products that drive economic growth in the UAE and beyond.”